PROJECT: HYDRANTULA INVESTOR MEMORANDUM

2 INVESTOR MEMORANDUM PROJECT NAME: HYDRANTULA EST.2017 FOUNDER: KUCHMA O.V., 1975 STARTUP FROM OCT 2021 PERMANENT 3D NODE-BEAM FORMWORK FOR UNDERWATER CONCRETING. BURNED CASH: 350K USD, FOUNDER ONLY STAGE: MARKET PROMOTION OF SERIES OF PRODUCT [25 MODELS] 1. HYDRANTULA’s Mission: 1. Through innovation, we strive to make marine construction technology, currently used only in oil and gas industry and in large infrastructure projects, accessible to everyone. We want a concrete 3D formwork 100-times smaller than an oil derrick to cost 10,000 times less. 1.2. We strive to develop fool-proof, scalable technology for marine construction that will consistently ensure great results with minimum research and minimum calculations. 1.3. We strive to develop technology for private marine construction that is practical for the DIY market and does not require large initial investment into tools and heavy machinery. 1.4. Over time, we strive to revolutionize the preferences of the middle class. We want everyone to dream not of a seaside home, but of a home rising above water.

3 2. TEAM. 1.2. Like many post-COVID companies, Hydrantula initially prioritized remote work (without any office at all), company management from a phone or a tablet Monday to Sunday in 15 time zones, and driver-seat-management. This allows us to make up for the lost 30% of work productivity that comes with remote work. Surprisingly enough, this team building approach and 7/15 management have proven to be fully effective. • This enables us to bring in talent from less economically developed countries (Georgia, Belarus, Mexico) or regions of Russia (Dagestan). • Freelancers or full-time university students doing odd jobs on weekend or in the evening. • At the same time, it also allows us to find rare specialists (patent specialists, culture experts, translators) from Germany, Moscow, or Singapore. • And most importantly, basically all workers love this practice and gladly employ it to save their time! • It lets us save money on office rent and use workforce “as needed” without any drama or conflict. 2.2. Who forms the core of our team in Vladivostok? • CEO [can’t go without him!] • Accountant • Solidworks product engineer • Multiskilled graphic designer • Polyethylene piping and polyethylene welding specialist. 2.3. Next is a group of employees who we have worked with regularly and for a long time and who spend ¼ - ⅓ of their worktime working for us: • Parser [a programmer who analyzes websites to collect spam address data] (Volgograd) • 3D animator (Batumi - Minsk) • Artificial intelligence and 3D graphics specialist

4 + composer (Batumi). • CATIA product engineer (Hong Kong) • Strength of materials, ice load, and hydrotechnical construction specialist, Rosneft consultant, professor (Vladivostok) • Web developer (Vladivostok) • 3D printing, aluminum casting, and rotomolding specialist (Ryazan). • Thermodynamics and heat transfer specialist (Shanghai) • Patent specialist (Moscow) • Patent specialist (Germany) • Spanish translator (Mexico) • French and German translator (Zurich). • International law specialist, lobbyist, GR specialist (Singapore). • Marketing specialist (Ohio). 3.1 There are several ways of assessing the market size. Based on process or functional similarity (based on the end product): • As a percentage of the plastic formwork market • As a percentage of the hydrotechnical market • As a percentage of the underwater concreting market (tremie). All of the global markets above are approximately $10B per year in size and comprise start-ups or secondary (seed) businesses of large panel formwork manufacturers. The underwater concreting market alone generates approximately $36B per year 3.2 As a percentage of the private pier market + As a percentage of the private ship lift market + As a percentage of the slipway market. + As a percentage of the private seawall market. In the United States, there are approximately six million privately-owned hydrotechnical structures with an average price of ~$50,000 per structure. In 80% of the cases, most of those products 3. MARKET SIZES

6 are traditional wooden structures with a service life of 8-15 years. However, they are increasingly replaced with aluminum, steel, or PVC structures with a service life of up to 25 years. 3.3 With an average estimated service life of 12 years, the American market can be assumed to reach $25B per year. Moreover, the American market also accounts for ~25% of the global private marine construction market targeted by us. 3.4 At the same time, we do not account for American municipal or federal shoreline stabilization programs for erosion and SLR (Sea Level Rise) control, which are estimated to reach $400B by 2040 (we are still far away from American tenders). Nor do we account for traditional marina and yacht club construction, which is at minimum on par with private marine construction and also raises significant investment. For example, a medium-sized marina in Tennessee (Simple Marinas) has recently been sold for the price of over US$100 million. Such projects have a strategic timeline of 3-5 years, and we will be able to widely expand into this market no sooner than 6-8 years after implementing our first projects in the US. 3.5 If we take into account the natural growth of the new hydrotechnical structure market (CAGR 5-8% per year), then the current estimated demand should be doubled. 3.6 Based on all this, Hydrantula’s global target market will amount to $40-150B per year by conservative estimates. 3.7 Notably, the total area of shallows (areas of seas and large lakes with a depth of up to 8 meters) is larger than the area of some countries such as Saudi Arabia or Kazakhstan. For example, the Sea of Azov or the Baltic Sea are 90% shallow. If only 3% of such water area was developed, it would generate material value worth over $90 trillion. Basically, it is the largest undeveloped resource in the world. 3.8 Notably, our technology is considered

7 a Disruptive Innovation, which means our target market is not occupied by large multi-billion competitor companies. It is essentially “empty” - the only competitors in this market are dozens of thousands of construction teams who operate in the same way as their grandfathers 60 years ago. 4. WHY IS HYDRANTULA A DISRUPTIVE INNOVATION? 4.1 The private marine construction market is still dominated by technologies used in Ancient Greece and Medieval Venice: stilts hammered (vibropiled) into soft sea ground and embankments, and foundations from large log crates filled with big rocks (essentially gabions). Obviously, it is impossible to create a stylish brand around hammering wooden or steel stilts. Neither the raw materials (logs), nor the technology employed for this

8 leave any space for patents, know-hows, or price edge. 4.2 One of the more recent technologies of note is steel or PVC Larssen sheet piling. However, even Larssen sheet piling was invented in 1906. Technically, it is just sheets with indentations and locks that can be put together into a seawall. In many cases, it is still cheaper to simply hammer in (or wash) a row of wooden stilts put close together. 4.3 The main characteristics of modern private marine construction are: • Primitive materials (logs or steel pipes). • Structure costs very commonly including machine hours of heavy machinery (that must work continuously for weeks) and qualified labor of excavator operators, crane operators, flatbed drivers, or barge captains. • Large business entry investments (up to $200,000 per team.) • Duration of work being highly dependent on the weather. 95% of all “wet” work is done on-site and above water only. • A lot of raw-material waste due to bottom geology and the impossibility to cut the material perfectly • 50% of water areas having prominent seasonality, rendering winter work impossible. • Construction teams being able to work only within 100-150 km radius from their base. As a result, neighbors will be suffering through unbearable noise and diesel fumes, and the structure will have a short service life and will soon require repairs. 4.4 All these factors make business scaling ineffective, as there is practically no opportunity to save on the size and nothing for the extra workers to do in winter. 4.5 This is how Hydrantula’s technology revolutionizes the workflow for private marine construction: • At least 50% of all operations (and sometimes even up to 90%) are done in a shop.

9 Shops also make it possible to produce semi-manufactured products during winter for storage. • Semi-manufactured and ready-made products can be transported on lowbed trucks across thousands of kilometers. • Most workers can be trained from scratch within a week. They will not need prior heavy machinery certification. • Involvement of heavy machinery is reduced to 1-2 days (or by 5-7 times). • Initial tool investments can be brought down to $5,000 for the team (dealer). • Work at the installation site generate practically no noise. • Service life of Hydrantula structures is up to 60 years. • Wasted material is no more than 10%. At the same time, the structures are one-of-a-kind in appearance. Creating a strong brand is a relatively simple marketing task. The technology is protected by several international patents and trademarked. 5.1 The main factor that determines how the private marine construction market will develop is legal regulation of procedures for acquiring construction permits. Countries with active marine development usually have mature institutes of private ownership of shorelines and long- term lease of water areas. Appropriate procedures are as simple as they can get and have strictly defined decision-making deadlines (generally 45-90 days). However, countries with undeveloped shorelines employ national ownership doctrines for water areas and shorelines. Their use is limited to municipal or process purposes (and exclude recreation or small boat use). Such countries include Russia, China, and Israel. 5.2 Conservationist and populist ideas of “leaving 5. KEY FACTORS THAT DETERMINE MARKET SIZE AND SALES SUCCESS IN VARIOUS JURISDICTIONS:

10 something to future generations” result in entire industries remaining underdeveloped and noncompetitive (industries such as composite manufacturing, shipbuilding and ship repair, tourism, underwater robotics, aquaculture, diving, water sports equipment, ferry service, hotel industry). 5.3 Currently, the demand for comfortable shores and marine recreation is very high across the globe, yet the opportunities for satisfying and monetizing it vary significantly from jurisdiction to jurisdiction. It ranges from picture-perfect Maldivian villas suspended

11 on water to completely empty seashores in North Korea, Iran, Gaza, or Libya. 5.4 Countries with many insular territories (such as Greece, Indonesia, or Sweden) or a river transport monopoly (such as Brazil) generally have exceptions or legal customs for simplified construction of critical insular infrastructure. 5.5 Climate also plays a big role. In countries with long or year-round holiday seasons, investments into marine infrastructure and small boats are recouped much faster, while the infrastructure itself has a longer service life and costs less than infrastructure in countries with short summers and hard winters. 5.6 Countries with developed coastal tourism, exotic diving, and recreational fishing industries, and pristine insular nature (such as the Maldives, Thailand, the Antilles, Bali, Australia, Oceania) get more from marine infrastructure than countries where tourism is based on historic sites and architecture. Countries with a rich history are usually highly conservative when it comes to marine construction and making changes to the waterfront. 5.7 Another essential factor is the level of the population’s wellbeing and whether it has any surplus money for purchasing recreational small boats or water sports equipment. 5.8 The prevalence of seafood in the national cuisine also plays an important role. Countries with centuries-old traditions of coastal fishing (such as Japan, Denmark, Norway, the Netherlands, Vietnam) have large fishing fleets that require infrastructure.

12 5.9 Another key factors are average population density, percentage of developed coastal territory, and the cost of land and real estate on shorelines. 5.10 Other factors that have an effect on the attractiveness of private marine construction include the strictness of environmental and water protection regulations, investment opportunities, quality of the judicial system, corruption level, as well as inherited particularities of the legal system and the population’s general sentiment on justice and the common good. 6. MOST ATTRACTIVE JURISDICTIONS AND WATER AREAS:

13 DOCK/SEAWALL/BOATLILFT MARKET IN THE USA Pros: A relatively liberal legislation allows coastal land owners to develop it and build piers and boatlifts without much problem with legal formalities. The cost of legal permission is a small percentage of the budget for the overall construction. No expensive expert checks or complex projects are required either. Low qualifying requirements for contractors means there are thousands of handymen active in this market. These are small businesses without in-house designers and architects, who build “by eye” and similarly to the previous completed projects. The high level of wellbeing among the population creates a large and solvent demand for scour protection of lots and boat docks. Essentially, this is a market of foremen. For those without ambition or architectural extravagance. For those who only have tried-and-tested solutions.

14 Cons: Generally speaking, lots are already developed and there is no possible way to deploy heavy machinery on them. Construction has to be done on water, from a barge. Expensive workforce leads to overabundance of simple and cheap construction materials, such as wood. This is America’s most favorite material, but it is not as durable when used in water. Both developers and contractors have minimal taste for experiments and innovations. Contractors are lacking in qualification, whereas developers are lacking in vision. This is incentivized by stricter construction laws: what was legal to build before 1979 [wet boat garages, gazebos over water] can now be only repaired, but not renovated or rebuilt anew. As such, “vintage-styled” renovation is a local pastime.

15 7. VALUE OF HYDRANTULA TECHNOLOGY FOR CONSUMERS AND SOCIETY 7.1 In most countries (except for Finland, the East Coast of the US, and some Persian Gulf countries and insular nations in Oceania),the shoreline and the seashore are considered a scarce resource that must be developed only in the interest of society and for some common good rather than in pursuit of solely private interest. Having enough money does not mean being able to develop the shoreline however you wish. And most historically developed coves and marinas regularly become targets of criticism and revisionism from political and environmental activists. 7.2 The value of Hydrantula’s technology is in its ability to double the recreational potential of water areas by preserving the coast in its pristine condition and moving marine structures 25-70 meters further into the sea, including into areas too deep to be suitable for swimming. At the same time, our structures do not hinder normal water circulation and do not cause waterlogging. 7.3 They also make it possible to terraform coves without wide natural sand beaches into terraced beaches and seafronts. 7.4 Hydrantula allows to create marina malls perfect for recreation and retail, not obstacle courses from tetrapods. They are also ideal for collective (cooperative) secure quays for small boats that do not require a special mole (with ramps and ship lifts). 7.5 Additionally, Hydrantula marine structures are easy to dismantle and can be constructed without generating any noise. 7.6 One of the main challenges of shallow water construction is preserving the balance of bottom deposits. Construction of pretty much any continuous structure leads either to the formation (or wash-over) of sand or pebble dunes, or to bottom erosion, which is the exact opposite (and often to both at the same

16 time).As a result, the structure will slowly sink into bottom deposits or its foundation will be exposed and suspended without touching any solid ground. But we managed to find a perfect balance. All this makes Hydrantula a very attractive and socially and environmentally responsible technology for marine construction. 8. VALUE FOR DEALERS, CONTRACTORS, DISTRIBUTORS, ARCHITECTS, AND STORE CHAINS: 8.1 Unlike most alternatives, our products have a bright and memorable design that is one-of-a-kind. A colorful palette reminiscent of M&Ms or LEGO sets us apart from the mass of monochrome (black or white) construction materials, giving us an advantage. 8.2 Unlike the alternatives, most of which were developed in the early to mid-20th century, our technology is brand new and is protected with international patents. 8.3 Unlike most other known methods of marine construction, our structures can be assembled or semi- manufactured up to 60-70% readiness in a shop environment all year round and transported over long distances. Better yet, weather conditions or availability of amenities at the installation site is almost never a problem for us. 8.4 Our formwork has multiple competitive advantages compared to traditional technologies and expands the realms of possibility for private marine construction on a budget. 8.5 A whole range of products in H2, H5, and H6 series simply cannot be implemented with currently existing technologies. 8.6 Our technology does not pollute water with zinc or heavy metal ions, toxic treatment agents, or carcinogenic antifouling solutions.

17 9. MAIN PRODUCTS THAT WE CAN MANUFACTURE. In marine construction, the foundation is the most important and equally the most difficult element of the entire structure. Everything above the wave level (1 meter above the maximum water level as a rule of thumb) is not directly exposed to water and waves and can be built using land [coastal] technologies (accounting for

18 higher humidity, strong wind, and possibly salt fog). Any such superstructure can be repaired and renovated using traditional methods by land construction workers. However, everything below the waterline is exposed to numerous hazards different to those on the shore. Underwater structures are very difficult to repair. They are generally built on the basis of the structure’s entire service life. The purpose for land foundation is to ensure load-bearing capability and prevent frost lift. For underwater foundation at depth (below the water freeze-up level), frost lift is not a problem. As such, the main purpose for underwater foundation is to raise the structure above water, ensure its load-bearing capability, provide wave resistance and prevent bottom soil erosion, as well as provide volume rigidity for the entire structure in extreme cases (ice drift, collisions with floating logs, etc.). Volume rigidity of Hydrantula’s foundation removes the need for a rigid connection to the seabed and makes it possible to distribute the weight of the useful structure via horizontal seabed “skids” on most types of soil. This not only makes construction cheaper, but also makes the hydrotechnical structure relatively easier to dismantle. That said, HYDRANTULA structures can also be anchored to the seabed with screw piles if need be.

19 10. KEY COMPETENCES NECESSARY FOR OUR SUCCESS: 10.1. DIGITAL DEVELOPMENT OF NEW HYDRANTULA FITTINGS, THEIR SYSTEMS, OR FORM ASSEMBLY METHODS. 10.1.1 CAD development and verification of modules for new Hydrantula fittings. Development of laser engravings (tattoos). 10.1.2 Confirmation of the 3D form’s interconnectivity, scalability, and possibility of assembly. Calculation of its estimated rigidity. Estimation of its prime cost per square meter of useful area and mass production viability analysis of the new fitting. 10.1.3 КConversion of the complete 3D model into formats suitable for adjacent work. STEP - for 3D printing of sand casting molds and aluminum casting of formwork matrices. GLB - for 3D visualization, AR/VR, 3D rendering, visuals, and online streams. PRC / PDF3D - for catalogs, labels, and technical documentation. STL - for 3D printing and rotocasting of scale models (1:6) for training purposes, exhibitions, or merch. FBX - for AI (artificial intelligence) systems interface. BLEND - for animation 10.1.4 Development of industrial matrices for rotocasting based on 3D models of the product. Casting, CNC machining, polishing, grain embossing, and laser engraving of the matrices. 10.1.5 Application of watermarks and easter eggs for preventing counterfeits - exact copies of our parts. In 3 years of working in this field, we have found many reliable partners and got sufficient competences and know-how. All our development is done digitally only, without test samples, prototypes, or mistakes. We get a high-quality product on the first try. Assuming the budget is “unlimited”, the whole production process from the idea

20 to the pilot run of a complete matrix, to preparation of documentation for it takes no more than 90 days. Moreover, “metal” matrices can be ordered from practically anywhere around the globe, without the need to transport or import them. 10.2. MARKETING MATERIALS AND DIGITAL ADVERTISING IN THE TARGET MARKET’S MOTHER TONGUE. LOCALIZATION OF MATERIALS TO LOCAL CULTURE AND TRADITIONS. 10.2.1 КHigh-quality translation of existing promotional material (including voiced ads). 10.2.2 Cooperation with local content creators. Adaptation of merch and marketing signals for customary social patterns of the TA. 10.2.3 Participation in exhibitions. 10.2.4 Spam 10.2.5 Search for ambassadors and GR-agents 10.2.6 Webinars and other training tools for dealers and handymen. 10.2.7 Raising awareness of the TA about the product. Communicating brand values and Hydrantula’s mission to the TA. 10.3. BUILDING A FABLESS CHAIN. 10.3.1 The key competency for making a business profitable is being able to build national chains for value creation: ODM manufacturing - Fulfillment - network marketing (online and offline) - Paying agent - QA agent 10.3.2 The main idea of our business strategy is to intentionally avoid developing our own in-house production capacity (outside of an experimental plant for testing samples and test runs) in all primary markets. Instead we plan to produce duplicates of most popular matrix models and make them available for existing (third-party) rotomolding facilities close to our target markets. 10.3.3 Our own personnel will only handle sales and promotion of the Hydrantula brand and technology.

21 10.3.4 ODM manufacturers will receive automated orders, “print” product batches until available stock resources are exhausted, and then hand them over for consignment storage at Fulfillment. 10.3.5 Fulfillment will then form and send pallet orders received from retail chains or our website when instructed to do so by the paying agent. 3.6 Retail chains will receive and sell the product (including through Drop Shipment) within the overdraft limit approved by the paying agent. 10.3.6 The paying agent will be controlling that retail payments are made on time, credit the supply chain, pay for ODM and Fulfilment services, as well as withdraw our profits into offshores or reinvest them according to our instructions. 10.3.7 The QA agent will control matrix wear, product batch quality, their placement in offline retail stores, and retail prices. 10.3.8 By retail chains we mean general purpose

22 marketplaces (Amazon); specialized home improvement and construction chains (Lowes, Home Depot, Leroy Merlin, Castorama, Bauhouse); large dealers of adjacent products, such as Yamaha or Suzuki outboard motors, modular plastic cube piers, or ship lifts (Shorestation). 10.3.9 Explosive Growth and Global Operations Department. 10.3.10 The key ingredient to success is the ability to achieve explosive growth in a new market and carefully establish sales channels, choose offered product lines, and build optimal logistics. 11. GLOBAL LOGISTICS 11.1. Given that there are only three global centers with demand for our products, that the time for intercontinental delivery by sea is too long, and that global logistics will account for a very large percentage of the end cost of the products (up to 30%), carrying out logistics from a single global manufacturing center such as Shanghai seems too ineffective and will not give us enough flexibility for fulfilling orders.

23 For this reason, we decided to focus on the following 3-4 fabless manufacturing centers: 11.1.1 Mexico or Canada - for markets in the USA, Chile, Panama, and Brazil (we are currently revising this idea - Trump’s tariffs have screwed things up). 11.1.2 Malaysia or Vietnam - for the entire Southeast Asia and Oceania, including Australia, New Zealand, Persian Gulf countries, and Indonesia. 11.1.3 Bulgaria, Slovakia, or Romania - for the EU, Turkey, Iceland, and Norway. 11.1.4 Russia as a center for our own production capacity for making trial and experimental runs and for markets in Japan and South Korea. 11.1.5 This strategy will increase matrix demand to 3-4 copies and will raise manufacturing costs by the same amount (with substantial savings for development). 11.2 ADVERTISING AND STRATEGIC COMMUNICATION. 11.2.1 Spam to addresses from our database comprising 500,000 entries (marinas, handymen, architects, developers, marine construction companies, marine concrete manufacturers, competitors’ dealers, adjacent product dealers, wharfs, small-scale ship repair businesses, aquaculture enterprises, marine contractors, fixers helping with marine construction permits). 11.2.2 Ads in specialized magazines 11.2.3 Geotargeted ads on YouTube, Facebook, Google. 11.2.4 LinkedIn 11.2.5 Website and social networks. 11.2.6. Participation in exhibitions 11.2.7 GR communications 11.2.8 Search for ambassadors 11.2.9 Banners in offline chain stores. 11.2.10 Merch 11.2.11 Stealth marketing promoters on online forums and in social network groups.

24 11.3 RETAINING MARKET LEADERSHIP. 11.3.1 Hydrantula technology looks dead simple at first glance. Many people unfamiliar with plastics processing or pipe and structure handling cannot understand why this technology is anything special. To them, the end product looks so logical and simple in appearance that it may as well have been made 50 years ago. During the patenting process of our technology in the European WIPO branch (which is public in the EU), we received many angry comments and memes with plastic pipes welded together into hothouses and balusters. In other words, people were outraged by how “primitive” the patent seemed. 11.3.2 Nevertheless, we finally obtained a European patent (out of court) in 2025 with 14 signs of intellectual rights protection. In other words, WIPO recognized that our technology has 11 independent and 3 combined technical characteristics that are subject to individual legal protection. This is quite a lot, as a typical European patent usually has only 3 such characteristics. 11.3.3 Notably, many professionals with 15-20 years of experience working with polyethylene often say “WAIT, YOU CAN DO THAT?!” when seeing our product, praising the structure’s high level of originality based on old-established products and technologies. 11.3.4 That being said, Hydrantula is totally vulnerable to reverse engineering and plagiarizing - our tech is extremely easy to copy.

25 We see three main ways to defend ourselves from “Chinese fakes”: • Real presence in all large markets and contacts with hundreds of dealers who will spot and readily notify us about any fakes. • The ineffectiveness of direct imports from China (due to very expensive logistics). The classic situation with fake jeans from China manufactured in a single factory for the rest of the world will not work here. These fakes will simply never be cheaper than the original. Counterfeit goods will then have to be produced in the US or its neighboring countries. However, few American or Canadian factories will take the risk of producing fakes, knowing that the fines for patent infringement alone can easily put them out of business. The same is true when it comes to sales: being a dealer in such large and obviously counterfeit goods is rather dangerous. • The LEGO Effect - our product line is too big and is built around one fine-tuned system, making any given alternative simply unviable due to incompatibility with our products. At the same time, investing into an “alternative universe” without having your intellectual rights protected is a very questionable affair. 11.4 GR 11.4.1 As we have said previously, the key factor to success (or failure) of our products in a given jurisdiction is legal regulation and its attractiveness to the bureaucracy. 11.4.2 Therefore, to successfully promote our products in foreign markets, we need to inform bureaucrats

26 about the main social advantages of Hydrantula’s technology: A. Free Stand Mode - a method of installing structures without any solid connection to the bottom, which means they can be dismantled without requiring any diving work. B. Silent Installation - silent and quick on-site installation of the structure. Unlike traditional methods of pile-driving that are characterized by torturous two weeks of day-and-night hydraulic hammer noises, Hydrantula will not drive away tourists or bother neighbors. C. Terraced Beach - makes marina moles useable for beach recreation and small business. D. Deepwater Boat Launch Ramp - a type of dry storage for storing boats at depth without needing a mole. This is also an environmentally-friendly way of creating a Dry Berth without ruining a bay with a mole. E. The technology can be used for coast protection structures or to combat shoreline erosion. F. Our structures have great appearance and a long service life. The main goal of GR is to simplify bureaucratic procedures and get privileges for receiving construction permits more easily for our technology in return for participation in social projects, strict technical control of dealers, withdrawal of dealership statues from incompetent contractors, enforcement of consumer rights and maintenance of high customer satisfaction level. 12. SALES CHANNELS Unlike competitors, Hydrantula’s business is built around a branching system of sales channels. 12.1 Most contractors involved in marine construction use construction materials with minimal processing, such as steel pipes, wooden stilts (logs), or wooden beams. Sometimes, they also use basic civil materials (decking or rails from decking; stainless steel metalware, pins) or blackwork (Larssen sheet piling) sold alongside other rolled metal products (channels, I-beams, pipes, rebar).

27 As a result, they have no specialized wholesale material markets for private marine construction, which means they have to build their own sales/supply systems. 12.2 Companies that produce retractable (moving) aluminum piers sell them either through chain stores or directly through their own websites, and there is zero demand for installers or construction workers as everything in the ready- made product market is designed around customers assembling/installing them themselves akin to IKEA furniture. 12.3 Manufacturers of PVC stilts, netted aluminum decking or PVC sheet piling, plastic pontoon cubes, as well as sophisticated composite products such as ship lifts sell their products to dealers directly and in container quantities, which seriously hinders the development of such technologies.. 12.4 Hydrantula’s main channels for instantaneous sales: 12.4.1. Offline retail chains (targeting DIY clients): This is one of the few ways to let customers see and touch the product in person. But the biggest advantage for us is free display of the product all year round. 12.4.2. Online retail chains (targeting part-time contractors). This solution is for past DIYers and those who assemble Hydrantula structures only once in a while, during some downtime in-between main jobs or alongside other home renovation work. It is also great for supporters of classis marine construction technologies who are prone to experimenting and “trying out something new”. 12.4.3. Direct online sales (targeting dealers who can frequently buy goods in LCL or FCL quantities). 12.4.4 Existing sales networks used for expanding their product range: dealers in marine decking, outboard motors, DIY kits for ship lifts, and other adjacent products. 12.5 Delayed sales channels: 12.5.1. B2B cooperation with hotel chains 12.5.2. B2B cooperation with marina chains 12.5.3. B2B cooperation with yacht, motorboat, and sports communities and associations.

28 12.5.4. B2B cooperation with architects and developers. 12.5.5 B2G cooperation with experts, research institutions, and environmental activists. 13. UNIQUE SELLING PROPOSITION 13.1 All marketing textbooks say that for a successful market entry you need to offer the market a USP - a product with a unique combination of properties or additional useful functionality not yet present on the target market. Most marketing failures are caused by new functionality being only really useful to an insignificantly small percentage of the audience or by the product not having enough significant or differentiating features. In other words, failures happen when a proposition is NOT UNIQUE ENOUGH.

29 13.2 In case with Disruptive Innovations, it is the other way around - a new product is too different from all the others present on the market, so users either do not know about the existence of such a product, or they need additional training to use it effectively, or they cannot evaluate the advantages of the new product because they are lacking relevant experience. In this case, putting such product on the market will either take too much time or require a decisive advantage in one of the key parameters or the price. In other words, a product that is “too unique” will not be interesting in and of itself - people will only buy a crazy cool alternative product. And for this product they will be ready to change their plans or take a training course. 13.3 Hydrantula’s technology has a lot of valuable properties that can be considered decisive for a variety of separate target audiences. Some value longevity, while others value the possibility to have the entire finished structure delivered to the installation site. Some would like to buy a structure that is unlike any other commercially available alternative (such as a deepwater ramp or foundation). Hydrantula’s entry to new markets will start with advertising these unique properties in consumer segments where such properties are supposedly essential. 14. PHYSICAL PRODUCT. 14.1 Broadly speaking, we sell marine structures: ramps, piers, ship lifts, terraced gravity retaining walls. But in practice, we do not offer global services for their assembly nor do we sell slurry. Instead, we sell a project: BIM forms and all unique components for them. We also offer a range of non-unique products made to order in our brand colors due create a recognizable look. 14.2 Strictly speaking, we sell only 40% of the required materials and components - the remaining 60% of the marine structure are sourced by the Customer locally and on their own (most pipes, rebar, and all concrete).

30 HOWEVER, we strive to act as a mediator when searching for a qualified contractor for installing the structure. 14.3 The required level of our involvement in the supply chain is determined as follows: A. Is this component unique or rare and as such may be too difficult for the Customer to source on their own? B. Can we help the Customer save some money or improve the quality (design) of the final structure for the same price? C. Can be put it inside other parts or transport it almost for free? D. Is this component considered oversized cargo? If we answer “Yes” to any of the questions A, B, or C, then this is our area of responsibility. BUT: we do not deliver oversized cargo (products exceeding 200 cm in length but not in stock length). We also do not deliver goods that can easily be bought locally and for less money. 14.4 As a result, our physical products can be transported in plastic or textile

31 BigBag-type packaging 75x75x160 cm or 90x90x160 cm in size, or as rolled up carcasses in stock length up to 320 cm. 14.5 Full list: • Fittings • Colored structural columns ∅225 or ∅250 SDR26 or ∅280 SDR33 up to 200 cm in length. • Colored cross bracings ∅140 or ∅160 SDR21 (not bars) up to 200 cm in length, including inserted into structural columns. • Composite rebar organizers (springs) • L-shaped rebar • Stainless steel or basalt fibers. • Concrete additives • Rubber hoses for single-use concrete lines. • Project printouts and BIM 14.6 Thanks to the self-imposed restrictions above, we can relatively cheaply transport our products according to “pallet transport tariffs” of any shipping company and to any distances up to 9,000 km. This allows us to operate in any country of operation from one and the same office. 15. PROFIT CENTERS. Civilized development of water areas also creates several attractive profit centers: 15.1 Profits from registration of rights to water and marine construction permits. Since Hyndrantula structures only consist of typical nodes

32 and allow for a limited range of typical structures (3D form, underwater wall, retaining wall, hammock frame, ramp, netted enclosure), legal compliance checks will also be simpler and take less time. Overtime, bureaucracies will get used to the fact that Hydrantula is an environmentally responsible technology with a clear and predictable result. This also simplifies design work and preparation of blueprints and BIM acts for material. 15.2 Profits from Hydrantula fitting manufacturing. Since we use standard rotomolding technology, we can easily look for production facilities around the globe and quickly change OEM manufacturers and produce and ship duplicates of rotomatrices. 15.3 Profits from distribution of orders between contractors and profits from training and other intellectual services. 15.4 Profits from structure assembly, installation, and concrete filling. The ability to assemble structures in shops and transport (tow) them over long distances allows us to evenly distribute workloads, flatten seasonal demand peaks and improve work performance using less qualified workforce. This also allows us to save on the scale and assembly line production.

33 NEW OPPORTUNITY 1. Before global warming, most coastlines were relatively stable. Coastline has traditionally been the most wanted plot of land, so coastlines spanning thousands of kilometers were developed into the most expensive real estate. As the ocean temperatures rise, storms become more intensive and frequent. Sea level starts to rise. As a result, coastline contours rapidly change in pursuit of a new “equilibrium point”. Yet ice continues to melt and temperatures continue to rise – and until there are no more ice caps left (or global warming is reversed), this “new” equilibrium will never come. The sea is rising. 2 Global coastline and erosion statistics: 2.1. Coastline length: Total distance of global coastline: ≈ 1,6M kilometers (source: CIA World Factbook + NOAA) 2.2. Risk of erosion: According to estimates by the United Nations Environment Program (UNEP), approximately 70% of global sandy coasts are at risk of erosion. Over 25% of American coastlines are under threat of severe erosion (data by USGS and NOAA). In the EU, around 20% of coasts are already in need of reinforcement. 2.3. Impact and need of protection: Over 600 million of people live in coastal areas that are 10m below the sea level. These territories have an increased risk of erosion and flooding. According to IPCC forecasts, up to 1 billion people may be at risk by 2100 due to sea level rise. 2.4 Regions with serious erosion problems Many studies show that over 75% of American ocean coasts are at risk of erosion. The most vulnerable regions are:

34 North Carolina (Outer Banks): since 2020, 10 houses collapsed into the ocean due to erosion and sea level rise. Luisiana: the coastline erodes at the rate of over 2 meters per year. Texas, Virginia, South Carolina: severe erosion puts at risk local infrastructure and residential areas. California (Dana Point): destruction of sea cliffs puts at risk cliff houses. 2.5 The only solution is uninterrupted reinforcement of the entire developed coastline, which will make it resistant to changing currents and sea level rise. This is technically feasible if coastal countries have a spare $1T in their budgets. However, a coast littered with large tetrapods or hidden behind a Great Wall loses most of its attractiveness. HOW TECHNOLOGICAL IS THIS? At first glance, Hydrantula looks like fun LEGO bricks but for adults. Is there really any deep-tech in it? There sure is! All you need is compare it to what is being used now. WHY DOES THIS MATTER? 1. It answers an urgent need. It is a response to challenges posed by global warming. 2. It has a large market without any sufficient solutions for major problems. 3. SLR – if we do not respond to it right now, it will turn into a catastrophe in 15-20 years. 4. Ineffective solutions consume too much energy, which will only intensify the rate of global warming.

35 16. CHALLENGES: 16.1. A severe shortage of “international” specialists with experience in sales in foreign markets (marketing specialists, logistics specialists, writers, brand managers, financial specialists, lawyers, patent specialists). The few that were available in the past have either relocated or lost their jobs and switched to something completely different. However, challenges with engineering talent is nothing compared to challenges with international sales managers who can guarantee fast entry of a product to EU, US, and AU markets. There is no such talent. At all. 16.2. The impossibility to hire emigrants (including those who emigrated a long time ago and not for political reasons). Even hiring past Belarussian or Kazakhstani citizens who speak Russian and currently live in Georgia, Canada, or Germany is an easy way to become a victim of political campaigns against emigrants and fifth columns. 16.3. Russia’s online self-isolation from key global platforms of business communication: LinkedIn, CrunchBase, Facebook, Canva, WhatsApp, Pinterest, YouTube. 16.4. Prohibitively dear money in Russia. 16.5. Trump’s tariffs and their reversals every 2 weeks. 16.6. Russian citizens being isolated from the financial sector of leading financial jurisdictions (which essentially makes it impossible to open bank accounts for companies founded by Russian citizens) such as Singapore, Hong Kong, the US, BVI, Belize, the Cayman Islands, the UK, Ireland. 16.7. Accumulated mutual disagreements regarding protection of intellectual property rights and trademarks that have led to full suspension of Russia’s membership in the Patent Cooperation Treaty [PCT] and the Madrid, Hague, Lisbon treaties. Basically, this means a global patent ban of Russia. 16.8. Policies aimed at technological sovereignty where it is unnecessary or even harmful such as rejection of GTIN and DUNS.

36 16.9. Financial isolation of Russian companies from the West. The inability to make transparent and legal transactions with most countries (except for India, China and some CIS countries) that are also recognized as expenditures by the FNS. 16.10. Severe toxicity of the image of Russia and Russian businesses in target markets. 16.11. Visa restrictions. 16.12. Postal isolation and self-isolation of Russia. 16.13. Revocation of stable and indubitable rights to empty lots from civil commerce. An empty lot stops being an investment asset protected by law. It can be seized because of hogweed infestation, for being undeveloped, for being underdeveloped, or because the interpretation of a law has changed over the years. It can be seized for something deemed more important or for integrated development. Or because of some corruption case that took place 20 years ago (but nobody was punished). 17. EXPENDATURES AND ASSETS 17.1. CREATIVE: 17.1.1. Brands (Hydrantula & Ammotilus) and Logo (AlienTarantula & EvilOctopussy); Slogan (1J2P = OneJumpToParadise; Best to Spawn Before Dawn). 17.1.2. Development of a corporate style and color palette. 17.1.3 Development of an exclusive font: OvalRune 17.1.4. Development of options for an expanded Logo for merch. 5. 3D mascot PONCHIK in four different outfits (roller skates, sneakers, flippers, and “on tiptoes”) and with three visuals: fur; plastic; old flask. 17.1.6. Development of visual renderings: Lego; Neon; Clay; Blue-Porcelain; Vintage-EatOut; Home-of-Sharks; Leprechaun- Gold; Britain-Decoration

37 17.1.7. Development of a dozen PDFs for infomercial brochures and their translation into 4 European languages. 17.1.8. Development of animations: ClayFactory and TamingTheSeas; NeonBikini 17.1.9. A series of five “F” 3D catalogs 17.1.10. Trimming and BIM calculator (currently 30% complete). 17.1.11. Websites: hydrantula.com and hydrantula.de [both to be replaced]. 17.1.12. Social networks. Need a clean-up and large investments into promotion. 17.1.13. Investments into spam address database (500,000 entries) and in spam itself. 17.2. LEGAL: 17.2.1 Registration of 2 patents and 2 Industrial Designs in Russia and 42 countries. 17.2.2 Registration of a trademark in Russia and 44 countries. 17.2.3. Certification in Russia and Germany. 17.2.4. 8 domains, including hydrantula.com; hydrantula.de; hydrantu.la; ammotil.us; 17.2.5. 51 American GTIN barcodes and approximately as many QR-codes. 17.2.6. DUMS number. 17.2.7. DEI certification. 17.2.8. Amazon account [currently inactive]. 17.2.9. Here should be a Russian legal entity with a plot of land estimated at 10M rubles.

38 17.3. KNOW-HOW, INVENTIONS, AND INNOVATIONS: 17.3.1. The concept of beam-and-node-based (pipe-and- fitting) non-removable formwork for liquid concrete casting underwater and the breaker zone. The “spider” idea 17.3.2. Development of a binary piping and its variations. 17.3.3. Development of a GrooveLock port and the concept of Pressurized Buttom-Up Offshore Concrete Casting. 17.3.4. The concept of assembly onto “bars with windows”. Cantilevers. 17.3.5. The concept of ultra-assemblability. 17.3.6. External composite rods 17.3.7. W-lock development 17.3.8. The concept of an “anti-bell” 17.3.9. The concept of a “logged” marine wall in a frame with manifolds. 17.3.10. The concept of a [through] lateral displacement. 17.3.11. The concept of proportional 3D cells. 17.3.12. The concept of FreeStand

39 17.4. PROCESS: 17.4.1. Development of approximately 35 working (already implemented or ready for implementation) 3D models. 17.4.2. 28 complete industrial aluminum rotomatrices tested during trial runs. And 7 approved and verified 3D models for producing matrices. And another 8 complete but not yet approved 3D models (due to lack of funds). 17.4.3. 2 rotomatrices produced in Russia. They are in good working condition, but have to be written off = US$10,000 down the drain. 17.4.4. Know-hows from successful designing of aluminum rotomatrices with multiple negative angles. 17.4.5. Trial runs of all produced rotomatrices and several successful “test” assemblies of

40 l2 piers and S3 sea ramps, as well as nodes for A18 marine foundations. 17.4.6. Development [simplification and exaggeration] and 3D printing of 7 mini-rotomatrices in 1:6 scale from ansi316 stainless steel and casting of product runs from them (for training and merch). 17.4.7. Another approximately 20 Pathfinder 3D models, i.e. raw 3D models which will never be implemented but which helped us form concepts, create typical nodes, and choose principles for developing and building pipelines. 17.4.8. Development of digital pipelines for reliable verification and reuse of 3D models, and their conversion to meet contractors’ needs. 17.4.9. Development of a 3D interface with artificial intelligence integration for faster generation of animations. 17.4.10. Coordinated work of global teams out of the office 24/7 (Germany, Georgia, Singapore, USA, Vladivostok, Moscow). 17.4.11. Tools for assembling structures. Approximate cost: 550,000 rubles. 17.4.12 Pipe, fitting ,rebar, and reinforced ring stockpiles. 17.4.13. Shop lease. 17.4.14. A prototype that stood in water for 9 years. 17.4.15. Merch inventory.

41 All this cost us $350,000. Of these, 70% were expenditures for the development, production, transportation by sea and customs clearance of aluminum matrices casted in Shanghai from epoxy and sand molds [3D printed]. Is [$350,000] too much or too little? For a start-up [especially from regional Russia in the difficult times of unprecedented protection of traditional values], this sum is a real fortune. On the other hand... Let’s imagine how a similar project could be implemented by a large company with progressive views on life and a love for robots and jogging: 17.4.16. The company appoints [transfers from another area of operation] a CEO and a chief accountant. 17.4.17. Then it hires two project managers: one with plenty of knowledge about concrete and formwork, the other with experience in plastics processing [spent 3 years extruding window frames in a shop]. 17.4.18. In total, the company’s salary budget would be $5,000/month. Assuming 40 months of work [like currently at Hydrantula] + 3 thirteenth salaries [as a New Year’s bonus], we get $215,000, and that is excluding taxes. With all taxes [as it should be], we get almost $300,000. 17.4.19. Add to that office lease ($1,000 x 40 months), a dispenser, water, paper, printer, cartridges, 4 laptops, an electronic signature for the taxman and a 1C suite license + 2 cabinets for accounting books, two business trips to the exhibition in Moscow, and 4 webinars on top of it all. Now we get almost exactly $350,000 17.4.20. Of course, these estimates do not include any patents [after all, there is no lawyer or inventor among personnel] nor any know-hows, trendy trusted pipelines or other fluff such as animations and 3D mascots. Only gigabytes of PowerPoint presentations for top management, project implementation charts, and minutes of

42 meetings. Well, and maybe also a fake certificate and a basic landing page in Russian and in the .ru domain. 17.4.21. Provided the CEO was highly motivated and the project managers were very competent, such a company could somehow produce a worthless Russian matrix which is as good as waste despite being in perfect working condition. Even so, the company would still spend $350,000 but show results 6 months earlier. 17.4.22. All in all, $350,000 is the lowest an Investor could spend to get a team of effective managers who will not produce a thing even theoretically because they have nothing to produce with yet. 17.5. LEGO EFFECT. 17.5.1. Most textbox will tell you that innovations and start-ups should begin with MVPs [Minimal Viable Products]. In other words, it is the bare skeleton of a product which can be shown to clients to make them more or less understand what is being sold to them. 17.5.2. Notably, until 2008, people thought that such things must be actual products. However, after 2008, it became common to think that such a product can be anything, even a mock-up, a replica, a prop, a papier-mâché figure, or a painted plaster model. 17.5.3. Generally speaking, the client sees some junk that is all glittery on one side (and may not even have another side at all). Then makers of this junk will try to sell it to the client, and when the client refuses, they bombard them with questions to find out why they do not want to buy it. This process is called “Customer Discovery”. If the poor soul does not refuse aggressively enough or cannot clearly explain what exactly they want to see in the product, then companies start thinking that their MVPs are good enough and can be mass produced. 17.5.4. And if the client clearly states that they need

43 another 2 buttons, a comfy handle, and some trendy colors, then the mock-up will be brought into a separate room where propmakers will attach all the requested features, repaint the mock-up, and then drag it out yet again to continue this torture from the very beginning. 17.6. ITERATE! 17.6.1. This is the best way to achieve a Verified Product and an MVM - Minimal Viable Market. This is when 10% of people surveyed become speechless upon seeing the product and are considered guaranteed buyers who will throw their money in your face as soon as they come to their senses. An MVM is a minimal viable market needed for the start-up to survive. And perhaps this is true for software, or gadgets, or leggings. 17.6.2. But there are products with which this approach simply never works. One such product are LEGO bricks. You cannot sell just one (or two) bricks no matter how cool they may be. You can only sell a set with many different bricks. Only then will this set become “the universal construction toy for children” or a “recreational” construction set. Having only one brick (even made of gold) is boring.

44 17.6.3. For some unknown reason [possibly pathological], I came to the conclusion that colorful bricks almost a meter in size in 20 kg in weight, which can be assembled into two-stories- high structures by adult dudes with a mat and a couple sledgehammers, is a pretty close analogy to LEGO. 17.6.4. And just like with LEGO, Hydrantula bricks should also be offered to the market in large assortments, as a catalog with 30 product names in a large variety of colors and assembly options. 17.6.5. And since marketing police utterly failed to put me into a straightjacket in time, we managed to do full 50 cycles of development of an innovative product from start to finish, which is very much outside the typical lifespan of 99% of start-ups given to them by investors. But we were full of determination from the get-go and managed to build early on a clever assembly line that utilizes “economy of scale” to its absolute maximum. 17.6.6. We almost achieved perfection both in terms of money and in terms of development time. What used to take us several months, dozens of rejects, and countless “clean slates” when developing our first product models can now be done within a couple weeks and on the first try. All the time. 17.6.7. Our pipeline provides for “downtime” to prevent tunnel vision and for various sophisticated cross-checks to prevent any small screw-ups from making it into the production stage. And in general we have learned how to make new models of our bricks perfectly! 18. TASKS 18.1 STRATEGIC GOALS: 18.1.1. Find a talented freelancer to make a new website. 18.1.2. Find an insider in the American marine construction market who will sympathize with us and extract useful information from them.

45 18.1.3. Hire an employee in the USA to work for us full time. So that we have someone to boss around 24/7. 18.1.4. Find a talented market specialist with global experience. Get a good media plan and a Promotional Strategy from them. 18.1.5. Prepare a set of agreements for extracting profits from the USA and Europe through a lease or rent + royalties for matrices or patent and TM licenses. Better to think it all over and make it more flexible so that we’re not in the red. 18.2. EXPERIMENTAL GOALS: 18.2.1. Collect empirical (practical) data on the castability of Hydrantula structures with various concrete mixes. Specifically, check the concrete mix with normal steel fiber additives [15-25 kg/m³]. 18.2.2.Test for the possibility to supply fiber-containing mixes, thin concrete, and fibrous concrete through ∅63mm and ∅75mm pipes and Camlock 75 interface as a way to cast concrete for structures in remote areas. 18.2.3. Test for the possibility to use ∅125mm and ∅150mm fire hoses 20m and 40m in length as disposable (sacrificial) concrete lines that are the only ones that can be rolled up. 18.2.4. Test the reliability of plastic serrated nipples for fire hoses. Design and cast fittings with serrated nipples. 18.2.5. Fill fittings with water and air under pressure to determine their burst pressure per fitting. Compare it to the fittings from recycled plastic pellets. 18.2.6. Same but with a welded column from recycled plastic to determine “weak spots” and to find absolute values of burst pressure. 18.2.7. Reinvent the mounting system for external composite rods.

46 18.2.8. Develop a Hydrantula assembly method that does not require a sledgehammer. 18.2.9. Find the ideal mini concrete mixer and mini concrete pump for making a fully autonomous concrete machine on a reasonable budget. 18.2.10. Come up with ways to mix and transport the dry concrete mix to the casting site on our own. 18.3. ROUTINE TASKS: 18.3.1. Design a plastic node for permanent mounting of the stainless steel cable (∅4-5mm) to the fitting and the pipe. 18.3.2. Complete translations of presentations into Asian languages (Chinese, Korean, Japanese, Vietnamese) as well as Portuguese and Danish. 18.3.3. Place the order (3D models) and pay for the 4th batch of matrices: J5, J11, DS6, C7, L1, N7, K2 18.3.4. File a request for extending the CE European certificate. 18.3.5. Complete tool procurement and testing to finalize tool recommendations for dealers and DIY clients. 18.3.6. Revise and remake older 3D models in case someone orders their duplicates. 18.3.7. Directly contact a manufacturer of composite square and triangular bellows and plastic holders. 18.4. CREATIVE TASKS: 18.4.1. A new fully overhauled website with a WOW effect!!! Work on design assignment and compile all raw visuals for it. 18.4.2. Find a regular supplier of pigments with visual effects (glowing, chameleon, metallic, pearl).

47 Approve the final corporate palette. 18.4.3. Complete the in-depth assembly manual in PDF- form with approximately 40 pages. 18.4.4. Finish up with the Trimming and Cost Calculator. 18.4.5. A reference document for medal fittings. 18.4.6. Make a brand intro video. 18.4.7. Learn how to make instrumental scans of the bottom relief. A sonar? 18.5. BUSINESS TASKS: 18.5.1. Build a fully monetary Pipeline in the US 18.5.2. Spam: expand the database, divide it by language. 18.5.3. Decide what to do with the ∅20+ composite rebar and find a supplier for thick ∅24 and ∅40 composite pipes. Even better if colored! 18.5.4. Find a manufacturer for L-shaped composite rods. 18.5.5. Figure out the taxes in Romania, Bulgaria, and Slovakia. Compare prices for Rotomold services from ODM manufacturers in these countries. 18.5.6. Find out the price of Fulfillment services and shipments from these countries to Germany. 18.5.7. Secure funding for Hydrantula equaling $200,000 18.5.8. Convince Leroy Merlin to cooperate with us. 18.5.9. Rotomold bench - refresh status. 18.5.10. Clarify tariffs on importing matrices to Europe and the US from China or Russia.

48 19. ON COASTAL TOURISM. 19.1. People often believe that our modern assumptions of ideal recreation and objects of our hopeless dreams have remained unchanged since times immemorial. That even in Shakespearean times, the British nobility would slip on speedos, grab surfboards, and go riding waves off the coast of the English channel. 19.2. But these beliefs can’t be any further from the truth... Just 150 years ago, so much as being tanned or even seen in wet clothes was considered most humiliating for the nobility on both sides of the Atlantic. 19.3. Sunbathing and other beach-related activities would start in so-called beach huts, in which a gentleman would change from his everyday attire into a striped long-sleeved bathing suit and equally striped leggings below the knee. Then he would get into a bathing machine [a tented carriage], which was then manually dragged to the water by commoners. Then he would get out of the machine... and walk on the bottom and splash around a bit. Less than 5% of adult men could swim back then. After that, he would crawl in his wet bathing suit back into the bathing machine, which then would them bring him back to the beach hut. And so that he doesn’t accidentally go into somebody else’s beach hut, all beach huts were painted different colors.

49 This is how people used to sea bathe in the 19th century. Unlike the nobility, commoners and children would simply put up ropes to hold on to in water so as not to drown. These “rope swimmers” would swim fully naked, because being in wet clothes was seen as more humiliating than being naked. 19.4. The first ever deck chair - the world-famous Adirondack chair (now a symbol of New York) - was invented and patented by Harry Bunnell in 1905. The first ever water skis were invented by Fred Walter, of Huntington, in 1925. The first snorkel - by Max Forjot in 1938. The first scuba set - the famous aqualung - was invented by French scientist Jacques-Yves Cousteau and Émile Gagnan in 1943. Air mattresses first appeared in Germany during WW2 and were initially used as rescue aids in water. The first bikini two-piece swimsuit was introduced by French fashion designer Louis Réard on 5 July 1946. The first neoprene wetsuit was invented by Jack O’Neill in 1952. Finally, the first Windsurfer-series sailboard was patented and launched by Jim Drake and Hoyle Schweitzer in 1968. In that same year, Bombardier launched its first ever water scooter - the Sea-Doo.

50 Kites and hydrofoils were invented in 1999. 19.5. It is no wonder why there is practically no infrastructure for coastal tourism, water sports, or small boats in Russia. In the Soviet era, people had basically no money for piers or costly sports equipment. So, when legislators were coming up with the first RSFSR water code in 1980, they could not even imagine that someone would want to build a house on water or a wet boat garage. Nobody even considered that as a possibility. 19.6. Meanwhile, centuries-old traditions of English land law make no differentiation between offshore water areas and shore land. As a result, any landowner in England [and the first 13 American colonies] owns every bit of their land down to the Earth’s core, whereas Crown land continues even underwater. However, the royal underwater domain only goes out to the distance, up to which a cannon on the shore can shoot, which is about 7 miles (or 12 km) from the shore. Because of that, landowners owning shoreline land on the American East Coast (and in Canada, Australia, or New Zealand) may claim “underwater land” for use. Following the traditional interpretation of “underwater land”, American courts recognize the rights of private owners, states, municipalities, or the federal government for such land,

51 which additionally makes offshore water areas more available for civil commerce. 19.7. As a result, the size of the American marine construction and small boat market reaches US$162B [for comparison, the total profit from oil and gas exports in Russia equaled US$120B at their peak]. Moreover, the 15 States that recognize ownership rights for “underwater land” account for 80% of this market. The other 35 states account only for the remaining 20%. 19.8. Below are the main patents for marine construction [not only private]: 1.Wooden pile driving in seabed ~ 2000B.C. 2. Sheetpile [Tryggve Larssen, Bremen, 1906] Patent № US839608A, 1906 3. Tetrapod [Pierre Danel, Grenoble, France, 1951] US2766592A; 4. Submerged Caisson,1932 [US2010199A, 1932 and US2939292, 1960; US5098219A, 1990] 5. Underwater sealed formwork [Wataru Ota, Japan, 1987; JP21769587A] 6. PVC Pile or sheetpile [USA, 2014 patent № US20140270986A1]

52 INVESTOR EXIT: The easiest and most obvious way to exit is to sell Hydrantula to a strategic investor from the list of largest formwork manufacturers. Specifically, the following companies are actively creating more know-hows in marine concreting and construction: Compagnie de Saint-Gobain: Holds 91 patents related to underwater construction, focusing on advanced materials and techniques. Mitsui & Co: With 88 patents, it emphasizes diverse applications in underwater projects. Wrekin Holdings: Known for 70 patents, contributing to innovative construction methods. Sika AG: Specializes in chemical products for construction, enhancing underwater concrete performance. Cemex and Heidelberg Materials: Both invest heavily in R&D for self-compacting and fiber-reinforced underwater concrete solutions123.

Doka GmbH PERI Group RMD Kwikform MEVA Schalungs-Systeme GmbH Hünnebeck Ulma Formwork Systems India Pvt. Ltd. Faresin Formwork Brazil, Cimbramentos de Peru Mecal S.A. ADTOMall Inc. PASCHAL Turbo Scaffolding Trimble Solutions Corporation METSÄ WOOD Bridgend Extrusion Ltd MC-Bauchemie Wall-Ties & Forms Inc. Berger Construction Equipment GmbH. Symons by Dayton Superior Ischebeck Titan LLC Noe FZE TMS Formwork and Scaffolding Systems Pvt. Ltd GETO GROUP Sharp Ply Ltd Condor S.p.A. Farina Formworks Acrow

+79662755558 sales@hydrantula.com hydrantu.la olegkuchma5 olegkuchma5 oleg-kuchma-70a601277 olegkuchma5 hydrantula hydrantula hydrantula.com hydrantula.de +7 966 275-55-58